Company commences workover on existing producing wells on the leasehold.
Overland Park, KS, April 12, 2021 (GLOBE NEWSWIRE) -- Infinity Energy Resources, Inc. (Pink Sheets: IFNY) ("Infinity" or the "Company"), an independent oil and gas exploration and development company, announced that it has closed the purchase of 100% of the working interest in a leasehold containing current oil and gas production and mineral rights in a proven basin in the Central Kansas Uplift geological formation covering approximately 11,000 acres (the "Properties"). The Company purchased the Properties from Core Energy, LLC, a closely held company ("Core") pursuant to an option it had previously acquired. The option provided the Company the right to acquire the Properties for $900,000 which was paid at closing on April 1, 2021. The Company utilized the net proceeds of its recently completed $2.05 million Convertible Preferred Stock Offering to fund the purchase and planned development of the Properties.
The purchase of the Properties included the existing production equipment, infrastructure and ownership of 11 square miles of existing 3-D seismic data on the acreage. The company acquired 100% of the working interest in the leasehold containing one horizontal producing well, one horizontal injection well, two conventional vertical producing wells and one supply well, which currently produce from the Reagan Sand zone with an approximate depth of 3,600 feet. The Properties have produced approximately 29,000 cumulative barrels of oil over the prior three-year period according to records maintained by the Kansas Geological Society.
Infinity has commenced with workover/stimulation activities on the two conventional producing wells which is expected to be completed within the next 30 days. In addition, the Company is scheduling workover/stimulation activities on the horizontal producing well which is expected to be completed in the next 90 days.
Infinity intends to drill at least four conventional production wells within the 12 months following the closing of the acquisition, subject to obtaining sufficient financing. The Company plans to perform tests and evaluation of other potential oil & gas producing zones that may be productive including the potential for other types of mineral deposits on the acreage. Should these additional oil & gas producing zones and/or other mineral reserves be proven in commercial quantities the Company may seek joint venture or working interest partners or seek offers from other industry operators for interests in such oil, gas and other mineral reserves contained in the acreage in exchange for cash and a carried interest in exploration and development operations or other strategic partnership to obtain financing for the exploration, development and production of such new reserves.
"The Company is very excited to now own the Properties and in particular, the potential for developing the existing oil & gas reserves which are indicated in the Properties reserve analysis and reports. The potential for additional oil, gas and other mineral reserves in commercial quantities for development purposes is very exciting and we hope it will add to the existing oil & gas reserves on the Properties. Using current well and past drilling data and underlying control logs coupled with current seismic data available to us, we believe the Properties will give us the opportunity for significant discovery and development of oil and gas reserves that can be economically produced at low risk with low lifting costs, in one of the more proven basins in the heartland of USA, " stated Stanton E. Ross, Chairman and Chief Executive Officer of Infinity.
About Infinity Energy Resources, Inc.
Infinity Energy Resources, Inc. had been involved in oil and gas exploration, development and production of natural gas and oil in Texas and the Rocky Mountain region of the United States as well as an oil field service company located in Eastern Kansas, Northern Oklahoma, Colorado and Wyoming prior to December 2012. Infinity was founded in 1987, is headquartered in Overland Park, Kansas and its common stock is listed on the Pink Sheets under the symbol "IFNY.PK". The Company's financial statements and additional information are available on the Internet at www.otcmarkets.com.
Forward-Looking Statement
This press release includes statements that may constitute "forward-looking" statements, usually containing the words "believe", "estimate", "project", "expect" or similar expressions. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Forward-looking statements in this press release include the following: whether the Company will be successful in developing the oil & gas reserves of the Properties; whether the Company will be successful in workover/stimulation activities of existing producing oil & gas wells that result in increased production of the Properties; whether the Company will be able to execute its exploration and development plans for the Properties, including obtaining the required financing; whether the required financing for the exploration & development of the Properties can be obtained on terms favorable to the Company and its shareholders; the quantity of hydrocarbons beneath the Properties and whether they can be economically extracted; the accuracy of the consultants' preliminary analysis and estimate of the recoverable oil & gas reserves on the Properties and their underlying assumptions; whether or to what extent the relevant geological zone contains hydrocarbons; the inability to predict, in advance of drilling and testing, whether any particular prospect will yield oil in sufficient quantities to recover drilling and/or completion costs or to be economically viable; the fact that the process of estimating the quantity of oil in a prospect is complex, requiring the interpretation of available technical data and many assumptions; the potential for significant inaccuracies in such interpretations and assumptions that could materially affect the Company's estimates or those of its consultants; the necessity for estimates to be based upon available geological, geophysical and engineering data that can vary in quality and reliability; the inherent lack of precision in estimates involving the quantity of oil in the development project in Kansas as a result of the foregoing; whether the Company will be successful in exploring for the existence of mineral reserves other than oil & gas in commercial quantities including the development of the underlying reserves of such reserves and its ability to find a qualified partner, if necessary, with whom to pursue its exploration and development program on terms and conditions acceptable to the Company; the Company's ability to extract oil and gas from the Properties and the costs and technical and other challenges of extracting oil from the Properties; variations in the prices of oil and gas, unexpected negative geological variances, governmental uncertainties in Kansas; operating risks, delays and problems, the availability of services on acceptable terms, the results of drilling and completions; changes United States regulation respecting oil and gas; and actions by creditors with respect to debt or other financial obligations of the Company; and its ability to resolve its liquidity and capital requirements. Additional information respecting factors that could materially affect the Company and its operations are contained in its annual report on Form 10-K for the year ended December 31, 2020 filed with the Securities and Exchange Commission.
For Additional Information, Please Contact:
Stanton E. Ross, CEO, at (620) 431-8840
John Loeffelbein, COO, at (913) 804-5870